Logistics and supply chain management can be risky and complex for entrepreneurs, not just those starting a business idea. Statistics show that “entrepreneurs are strongly advised to enter the market with work experience of at least three years and expertise in logistics and supply chain management.” But where does one start?
Amazon hopes to fill this gap and the uncertainty that could hold entrepreneurs back from their next big break. The e-commerce giant is introducing a Delivery Service Partner (DSP) program in Australia. This initiative will particularly benefit the business owners of Sydney, Melbourne, and Brisbane.
Retail World reports that the DSP will help entrepreneurs grasp concepts and thrive in the delivery business, no matter the size of the start-up. This will be done using resources, including training, technology, and other services.
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How will DSP work in Australia?
Amazon partners will operate up to 40 delivery vehicles, which will “empower small businesses” with logistic solutions. With the retailer’s business background and training on offer, delivering fast and accurately will benefit start-ups.
Amazon Australia’s delivery and supply chain GM, Anthony Perizzolo, says DSP will create opportunities for Australians to expand their “last-mile network with DSP.”
Who qualifies for the program? Amazon seeks “hands-on owners with grit who want to hire and motivate a high-performing team of delivery associates.” However, no minimum logistics experience is needed, although “great customer service skills” will be useful.
To protect all parties involved, applicants must “demonstrate” that the company has $50,000 in liquid assets. How will entrepreneurs generate an income? Amazon says, “Revenue will come from payments from Amazon for delivering packages.”
Start-up potential in Australia
Australia’s start-up environment is extremely attractive, especially in Sydney and Melbourne. Statista says it continues to be a “melting pot of ideas and innovation as the startup scene continues to evolve.”
The survey conducted between July and August 2023 found that the main funding source for start-ups in Australia is “personal cash contributions.” That’s a whopping 72%, and out of this group, 34% stated that they received this money from family and friends.
Despite this, North America is still the best place to start a new business. It has the highest number of unicorns worldwide. “As of April 2023, approximately half of unicorns worldwide were headquartered in North America,” according to Statista.
Why does Amazon see potential in Australia?
Amazon is not only focusing on faster deliveries this year but also on gaining strategic battlegrounds in areas like Australia.
Just last month, Amazon finally overtook eBay as the leading marketplace industry in Australia. This historic moment was confirmed by new research conducted by Pattern, which found that customers find that Amazon products have more quality, a larger product range, and the most convenient as well as reliable returns.
In 2023, Amazon changed its fulfillment network, operating with eight regional hubs. This resulted in faster turnaround times for same-day delivery.
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About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
